- The Securities and Exchange Commission (SEC) charged the crypto exchange Beaxy with operating an unregistered exchange.
- Beaxy, ahead of the charges, ceased operations, citing an “uncertain regulatory environment”.
- Bitcoin price continued to recover on March 29, trading above $28,200, nearing the nine-month high of $30,000.
The crypto regulatory crackdown found a new victim on March 29 as the Securities and Exchange Commission (SEC) continued taking down crypto companies. This is the second major lawsuit on a crypto entity this month and the fourth in the span of two months, including the charges it announced against now-arrested Terraform Labs founder Do Kwon.
SEC pushes a crypto company into the abyss
The SEC, on March 29, announced charges against the crypto asset trading platform Beaxy as well as its executives. The regulatory body went after the company for failing to register as a national securities exchange, broker and clearing agency. The founder of Beaxy, Artak Hamazaspyan, was also charged with raising $8 million with an unregistered asset BXY. Additionally, Hamazaspyan was also accused of misappropriating at least $900,000 for personal use, which included gambling.
The Director of the SEC’s Division of Enforcement, Gurbir S. Grewal, in addition to the charges, stated,
“When a crypto intermediary combines all of these functions under one roof—as we allege that Beaxy did—investors are at serious risk. The blurring of functions and the lack of registrations meant that regulations designed to protect investors were not followed or even recognized by Beaxy.”
Beaxy, on the other hand, took it upon itself to shut down its operations before the SEC could do anything about it. A day before the regulatory body placed charges, the trading platform announced the suspension of services on the exchange. Beaxy noted,
“Due to the uncertain regulatory environment surrounding our business, we have made the difficult decision to cease operations…We forthrightly committed to cooperation with the Securities and Exchange Commission (SEC) for over two years…Unfortunately, despite our best efforts, it has become clear that the regulatory environment is just too uncertain to continue operations.”
Within the last two months, the SEC has taken action against multiple crypto entities, starting with Terraform Labs and its founder, Do Kwon. This was followed by TRON and its founder Justin Sun this month. The influence of conducting regulatory crackdown also reached another agency as the Commodity Futures Trading Commission (CFTC) charged Binance and its founder Changpeng Zhao with violating federal laws.
Bitcoin price remains unfazed
Bitcoin price is trading at $28,310, right under the critical resistance at $28,567. The SEC’s charges on Beaxy noted no impact on the crypto asset, just as the CFTC going after Binance did not either. BTC is inching closer to breaching the barrier to mark a nine-month high.
Flipping the critical resistance into support would also enable Bitcoin price to rally toward $30,000. Reclaiming this level is crucial for BTC to initiate a recovery rally, which would enable the crypto to undo the losses experienced in June 2022.
BTC/USD 1-day chart
However, should the breach fail again and BTC ends up declining, traders would need to watch out for a retest of the critical support at $24,943. Should Bitcoin price slip below it, the bullish thesis would be invalidated, and the cryptocurrency could fall to $22,200.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
XRP struggles near $0.7440, could still sustain rally after Robinhood listing
Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.
Dogecoin price forecast: Miners offload $240M as DOGE approaches risk zone
Since Donald Trump’s victory on November 5, Dogecoin has emerged as the best performing asset among the top 10 ranked cryptocurrencies. On November 12, DOGE reached a new milestone price propelled by Trump’s statement confirming Elon Musk’s involvement in the incoming administration.
Ethereum Price Forecast: ETH's declining supply could fuel bullish pressure toward $3,732
Ethereum is trading near $3,220, down 2.5% on Wednesday after its supply began trending downward. The declining supply could fuel bullish pressure for the top altcoin, especially as institutional demand for ETH ETFs is also rising.
PEPE hits new all-time high, rallies nearly 50% following Robinhood and Coinbase listing
PEPE rallied over 50% on Wednesday and hit a new all-time high after crypto exchanges Robinhood and Coinbase announced they would list the meme coin on their respective trading platforms.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.